Gyeonggi Province Confirms 2 Trillion Won in SME Development Funds for Next Year...Interest Rate Cut by 0.15%
Suwon NewsĐăng 2019.12.25 06:11
2 trillion won increase from 1.8 trillion won this year...Fund loan interest rate 2019 3.0%⇒ 2020 2.85%Small business owner fund repayment period extended (1-year grace 3-year repayment ⇒ 1-year grace 4-year repayment)
[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province announced on the 25th that it has finalized the scale of 'next year's SME development funds' at 2 trillion won, including 1 trillion won for working capital and 1 trillion won for startup and competitiveness enhancement funds to stabilize management of small and medium enterprises in the province.
The focus was on expanding support for financially vulnerable groups including small business owners and low-credit enterprises, and strengthening the growth foundation of promising export companies. The fund loan interest rate is 2.85%, and interest subsidy ranges from 0.3% to 2.0%.
First, funds for small business owners were increased by approximately 33% from 150 billion won last year to 200 billion won, and 10 billion won was allocated for social enterprises. Working capital refinancing loans are provided to low-credit enterprises vulnerable to interest rate fluctuations.
In particular, to reduce the burden on small business owners, the principal repayment period was extended from the existing 1-year grace 3-year installment repayment terms to 1-year grace 4-year installment repayment terms.
In terms of export promotion and regional economic revitalization, a new support item for 'export-oriented enterprises' was established. Support is provided to companies with export records within one year, with up to 500 million won per company and a total scale of 20 billion won.
5 billion won was allocated for companies affected by natural disasters such as earthquakes or social disasters, and a total of 40 billion won in 'special management funds' was established to respond to urgent domestic and external economic risks such as Japan's export restrictions.
Funds were also prepared for business owners seeking a comeback and youth startups. To this end, 5 billion won in special management funds for hope exceptions (re-challenge) were prepared, and support for youth innovation startups with a fixed interest rate of around 1% is also provided at a scale of 20 billion won. Additionally, restart business funds were reorganized to enable smooth support for lease deposits and other expenses.
To ensure fund soundness and increase user convenience, comprehensive quarterly post-management surveys are being thoroughly conducted on companies that suspend, close, or relocate to other cities and provinces, and the ActiveX plug-in method is being removed to improve the 'online fund management system (G-money)' for smoother use.
Last year, the province supported a total of 11,048 SME development fund projects worth 1.9973 trillion won (1.0761 trillion won for operations, 921.2 billion won for startup and competitiveness). Small and medium enterprises and small business owners wishing to receive fund support can apply through the online fund management system (g-money.gg.go.kr) or through 23 branches of Gyeonggi Credit Guarantee Foundation (main number 1577-5900).
Lee So-chun, Head of Specialized Enterprise Support Division, said "The 2020 development funds will reflect market interest rate trends by setting the fund loan interest rate at 2.85%, down 0.15% from 2019 (3.0%), reducing interest burden on SMEs, and separately establishing a support item for export companies to reflect and adjust to market conditions."
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